It would be good to do an audit of the lists to check whether the beneficiaries exist and are genuine, because it matters who has prepared these lists
The cash transfer of subsidies in 29 schemes in the first phase is finally set to kick off in January. Everyone, in rural India particularly, has been looking forward to this and it is hoped that the government has everything in place for the transparent and smooth functioning of this game-changing project, a paradigm shift from the present mode of doling out subsidies.
The current system is grossly misused by those responsible for the distribution of subsidies to enrich themselves and their supporters. As Rajiv Gandhi had said, for every `100 given, only `5 reached the target consumer. The leakage of funds ran into thousands of crores of rupees. If this cash-transfer system through the banks, based on the Aadhar platform, works, it could save a gigantic sum of money and help decrease the fiscal deficit.
It is a pity that the Opposition has described the project as “populism”, but that is expected knowing their penchant for running with the hare and hunting with the hound. Union finance minister P. Chidambaram has said the lists of beneficiaries are ready and will be digitised. It would be a good thing to do an audit of the lists to check whether the beneficiaries actually exist and are genuine, because it really matters as to who has prepared these lists. For instance, when the Prime Minister gave a package of thousands of crores for the Vidarbha farmers, a big chunk of it was hijacked by rich politicians who appropriated even the bullocks and buffaloes. It was not retrieved from them even though there was a hue and cry and the culprits identified.
The government has left out the fertiliser subsidy from the 29 schemes. This is a mystery. It has been talked about endlessly and, in Vidarbha for instance, the collector had announced cash transfers of fertiliser subsidies several months ago. Yet nothing has happened. It is a pity if the government has done this under pressure from the fertiliser companies, who today are the beneficiaries of the subsidies.
Since this project will improve the quality of life of the poor, it would be better to involve the village panchayat heads instead of district Congress presidents. It would be counter-productive if political functionaries are involved, except as watchdogs.
The involvement of NGOs as business correspondents, as extensions of brick and mortar banks, is welcome provided the bona fides of the NGOs have been checked. The government should also involve the post office, the only organisation in the country that reaches the last mile.
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